Ex post vs. ex ante pricing: Optional calling plans and tapered tariffs

@article{Clay1992ExPV,
  title={Ex post vs. ex ante pricing: Optional calling plans and tapered tariffs},
  author={K. Clay and D. S. Sibley and P. Srinagesh},
  journal={Journal of Regulatory Economics},
  year={1992},
  volume={4},
  pages={115-138}
}
  • K. Clay, D. S. Sibley, P. Srinagesh
  • Published 1992
  • Economics
  • Journal of Regulatory Economics
  • We study optimal nonuniform pricing in a setting where a customer's demand at the start of a billing period contains a random variable whose realization becomes known by the end of the billing period. In this context, an optional calling plan is a tariff which the consumer must select based on his/her expectations about the random variable, whereas, under a tapered tariff, the consumer's choice of usage charge is made after he/she knows the realization of the random variable. We show that for… CONTINUE READING
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